It comes after the company saw its operating profit rise by 18% to £327million as new business sales rose 13% to £12.2billion
Royal London is to share £199million with around 2.4 million eligible customers after its annual earnings jumped.
The money will be paid into its customers’ pensions and stocks and shares ISAs on April 1. The amount each person will get is based on the value of the pension or ISA savings they have invested with Royal London.
It brings the total paid under the Royal London profit share scheme to more than £2billion since 2007.
It comes after Royal London saw its operating profit rise by 18% to £327million as new business sales rose 13% to £12.2billion. Underlying pre-tax profits lifted by £1 million to £261 million.
Royal London said its workplace pensions business was its “largest source of new customers” with 230,000 new policyholders taken on in 2025, taking the total to 2.2 million.
Last September, it also launched its new stocks and shares ISA, which also qualifies for profit share payouts.
The group added it was launching its “targeted support” offering this year under a new scheme being introduced by the Financial Conduct Authority (FCA) to act as a bridge between generic guidance and individual advice.
Barry O’Dwyer, group chief executive, said: “We’re owned by our customers and, when we do well, they share in our success.
“In April, we will share £199 million with eligible customers through ProfitShare, bringing the total shared since 2007 to over £2 billion – a tangible demonstration of mutuality in action.”
He added: “We recorded another strong performance in 2025 with operating profit up 18%, reflecting the positive momentum across our business.
“This was supported by our first full year in the bulk purchase annuities market, where we secured a series of key transactions as trustees and advisers valued the stability and long-term commitment that a mutual can offer.”
Royal London said: “Following the changes announced in the budgets over the last 18 months – around inheritance tax, cash ISA contributions and salary sacrifice pension contributions – it is likely that many people will need to reassess the ways in which they save for the future.
“However, with only 9% of the UK population paying for personal financial advice, the vast majority of customers are navigating complex financial decisions on their own.
“Our modelling suggests that Targeted Support could benefit 21.5 million people in the UK through the actionable advice it provides.
“In 2026, we will launch our Targeted Support offering, designed to complement our continued commitment to offering advisers the support and tools they need to deliver positive outcomes to their clients.”
